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Weak earnings pressure European shares early on

Thursday, 25 Oct 2012 | 7:12 AM ET

LONDON, Oct 25 (Reuters) - European shares fell on Thursday as third-quarter results from the likes of WPP and UPM-Kymmene highlighted worries over the outlook for global growth and earnings and helped keep equities in a tight range.

By 0704 GMT, the FTSEurofirst was down 0.88 points, or 0.1 percent, at 1,092.83.

The index remained in a tight 30-point trading range that began in early September, with the downside capped by recent stimulus action by central banks but upside momentum difficult to maintain as global growth remain patchy.

``We are relatively constructive on markets longer term but we will remain rangebound in the coming months until we see a turning point in terms of growth,'' Philip Poole, global head of macro investment strategy at HSBC Global Asset Management, said.

Concerns over earnings continue to cap momentum as investors wait to see whether the stimulus action from central banks, particularly a third batch of quantitative easing from the United States, manages to boost growth.

Finnish forestry group UPM-Kymmene shed 5.6 percent after missing third-quarter expectations, while WPP , the world's largest advertising group, slipped 4.5 percent after it cut its full-year outlook for the second time in two months on Thursday.

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WPP
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